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25/05/2016
1
The Value Driven-Agile PMO PPM Conference, Holland
25th May, 2016
Michael Nir President Sapir Consulting US
The Agile PMO – great results NOW
Michael Nir
President @ Sapir Consulting US
• M.Sc. Engineering, PMP®, SAFe™
accredited
• Author of 10 bestseller business books
• Global clients
• Integrating the hard and soft parts of
Business, Development and more
The Agile PMO – great results NOW
Management consultant, Agile coach, speaker and author
25/05/2016
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Agile Thinking and the PMO
The Agile PMO – great results NOW
The Agile PMO is expanding on the
manifesto to address end-to-end Agility
• It is all about value – and no,
documents don’t provide it;
• A Lean method for selection and
prioritization;
• PMO focus on strategic resources, Agile
provides the local empirical leadership;
• PMO perception – leading the change;
• How many of you manage a PMO or
have a PMO in the organization
• Is your PMO driving Agile thinking?
• Is your PMO a change agent?
• Complete the sentence: “Yes we
have a PMO in the organization
and… “
The Agile PMO – great results NOW
Reflect
25/05/2016
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Gartner 2012
ESI 2013
The Agile PMO – great results NOW
PMOs Don’t Deliver Value
The Agile PMO – great results NOW
>> The PMO Challenge: 72 percent of respondents
claimed the PMO had been challenged by senior
management. The top two were
• lack of perceived value (44%);
• lack of project/program maturity in the
organization (41%)
State of PMOs - 2015
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50% Failures
The Agile PMO – great results NOW
The Agile PMO – great results NOW
An organizational structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools and techniques PMBOK 5th edition
PMBOK Definition – Where’s the Value?
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The Agile PMO – great results NOW
How did we get to 50% failures in PMOs?
Pete Recruited to head the PMO of Boston-Tech
• 2.5 Billion in sales
• 12 Global locations
• 17,500 employees
• Integrated product
• Responsible for portfolio delivery of business
software solutions
Build me a PMO worthy of Maine-tech!
Yes Master
The Agile PMO – great results NOW
The Story of Pete the PMO Manager
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I need a Staff
Maybe Select Tools
Training Need
Assessment?
Support the PMs
New Reports
and Templates
PMBOK? PLC
The Agile PMO – great results NOW
Common First Steps of a PMO
I need a Home
No Tools
No Tools
Training
Training
No Tools No Process
The Agile PMO – great results NOW
What the Gap Analysis Identifies
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I need Reports! Better Control! A methodology
NOW
The Agile PMO – great results NOW
What the Gap Analysis Identifies – Executives
I need a Staff
Maybe Select Tools
Training Need
Assessment?
Support the PMs
New Reports
and Templates
PMBOK? PLC
The Agile PMO – great results NOW
Back in the Office
Pay me a Lot! I can help
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What Would
You Do?
The Agile PMO – great results NOW
Discuss with the Person Next to You
We’re not thinking End-to-End Agility
The Agile PMO – great results NOW
PMOs are not Functioning as Value Driven, Change Agents
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The Typical Next Steps – PMO Failures
• The Tactical PMO
• The Process PMO
• The Chocking PMO
• The Tools PMO
50% The Agile PMO – great results NOW
‘The bureaucracy is
expanding to meet the
needs of the
expanding
bureaucracy’
(O. Wilde.)
The Agile PMO – great results NOW
The Process PMO
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Starting with tools -
Eternalizes the wrong
WOW
The Agile PMO – great results NOW
Focusing on Tools not on Value
We can do
Better!
The Agile PMO – great results NOW
The Agile PMO
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The Agile PMO – great results NOW
The Agile PMO
A centralized portfolio management entity
that enables faster delivery of products
• Promotes Lean thinking – remove obstacles
• Pull across product delivery organization
• Effective resource allocation, capacity
planning
• Change agent
The Agile PMO – Embrace Value
The Agile PMO – great results NOW
The Agile PMO
A centralized portfolio management entity
that enables faster delivery of products
• Promotes Lean thinking – remove obstacles
The Agile PMO – Embrace Value
25/05/2016
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The Agile PMO – great results NOW
Toyota Defined 7 Wastes
• Waste reduction is an effective
way to increase profitability
• From a customer's point of view,
value-added work is a process that
adds value that a customer is
willing to pay for
• Waste occurs in product
development as well
Manufacturing Product Development
Transport Redundant or unnecessary interfaces
Inventory Missing features or gold-plated features
Motion Task switching
Waiting Waiting time
Over Production Sloppy requirements
Over Processing Project bureaucracy
Defects 2nd or more iterations and revisions
Effective, Streamlined Delivery - Reduce Waste
The Agile PMO – great results NOW
25/05/2016
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Project Management Example from my organization
Redundant or unnecessary interfaces
Missing features or gold-plated features
Task switching
Waiting time
Sloppy requirements
Project bureaucracy
2nd or more iterations and revisions
Examples from My Organization
The Agile PMO – great results NOW
PMO is Positioned to Lead Waste Removal
The Agile PMO – great results NOW
How long are tasks waiting in Queue?
Is it ‘easy’ adding a
template? How about
removing one?
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Streamline delivery– KANBAN the Waterfall
The Agile PMO – great results NOW
• Visualize work
• Prioritize work
• Limit work
PMO is Best Positioned to Remove
Project and Process waste
The Agile PMO – great results NOW
Effective, Streamlined Delivery - Reduce Waste
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The Agile PMO – great results NOW
Adding Value by Doing Less The 25/25 Rule: Achieving More by Doing Less Boaz Ronen, Tel Aviv University Faculty of Management Thomas G . Lechler, Stevens Institute of Technology Edward A . Stohr, Stevens Institute of Technology
How Much ???
The Agile PMO – great results NOW
The Agile PMO
A centralized portfolio management entity
that enables faster delivery of products
• Pull across product delivery organization
The Agile PMO – Embrace Value
25/05/2016
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The Agile PMO – great results NOW
Traditional Opportunity Management is ‘Push’ Managed
Push; when Opportunities/Projects arrive
• Receive a business case
• Accepted into the project/product organization regardless of work-in-
progress
• Increases utilization – reduces throughput
• Over allocation of resources
and ‘bad’ multi-tasking
The Agile PMO – great results NOW
Pull Framework with Kanban is Best for Managing Incoming Opportunities
Pull; when Opportunities/Projects
arrive:
• Staggered in a Kanban
• Pulled into the project/product
organization based on system load
• Throughput is managed
• Projects and products are completed
faster
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The Agile PMO – great results NOW
Pull Framework with Kanban is Best for Managing Incoming Opportunities
PMO is best positioned to
manage incoming opportunities Kanban
The Agile PMO – great results NOW
Pull Across Product Delivery Organization
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If I stopped now…
The Agile PMO – great results NOW
The Agile PMO – great results NOW
The Agile PMO
A centralized portfolio management entity
that enables faster delivery of products
• Effective resource allocation, capacity
planning
The Agile PMO – Embrace Value
25/05/2016
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The Agile PMO – great results NOW
Traditional, Portfolio Driven, Capacity Planning, Fails
Planning resource allocations:
• Multi project resource constrained scheduling is complex (NP problem);
• The tactical and operative schedule is mostly wishful thinking;
• Often when resource conflicts occur
– managers resort to the one ‘rule of
thumb’ that never fails – those who
yell loudest, win
The Agile PMO – great results NOW
Alternative Capacity and Resourcing Methods Provide Better Results
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Operative capacity planning should be
based on an effective ‘Pull’ method
The Agile PMO – great results NOW
The Agile PMO – great results NOW
The Agile PMO
A centralized portfolio management entity
that enables faster delivery of products
• Change agent
The Agile PMO – Embrace Value
25/05/2016
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Deadline
• PMO - our clients are looking
for…delivery on October 2016
• Scrum team - this is not part of
the Agile Manifesto or Scrum
handbook, Software is difficult
to predict
The Agile PMO – great results NOW
PMO and Agile Scrum Teams – Speak Different Languages
Commitment
• PMO - You said it will be
delivered in two weeks
• Scrum team - We’ve
committed to commit we
didn’t commit to deliver
The Agile PMO – great results NOW
PMO and Agile Scrum Teams – Speak Different Languages
25/05/2016
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Agile leadership and the shoe continuum
The Agile PMO – great results NOW
Extreme Agile
Business Portfolio
Let’s investigate further
The Agile PMO – great results NOW
Extreme Agile
Business Portfolio
Agile Leadership and the Shoe Continuum
The Developer
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The Agile PMO – great results NOW
Extreme Agile
Business Portfolio
Agile Leadership and the Shoe Continuum
The Scrum Master
The Agile PMO – great results NOW
Extreme Agile
Business Portfolio
Agile Leadership and the Shoe Continuum
The Coach
25/05/2016
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The Agile PMO – great results NOW
Extreme Agile
Business Portfolio
Agile Leadership and the Shoe Continuum
Winter in Boston Agile
The Agile PMO – great results NOW
Extreme Agile
Business Portfolio
Agile Leadership and the Shoe Continuum
PMO Comfort
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The Agile PMO – great results NOW
Extreme Agile
Business Portfolio
Agile Leadership and the Shoe Continuum
PMO Portfolio Manager
The Agile PMO – great results NOW
Extreme Agile
Business Portfolio
Agile Leadership and the Shoe Continuum
25/05/2016
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The Agile PMO – great results NOW
Extreme Agile
Business Portfolio
Agile Leadership – Establish Collaboration
The Agile PMO – great results NOW
Extreme Agile
Business Portfolio
Use the Manifesto as a Starting Point
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The Agile PMO – great results NOW
The Agile PMO
A centralized portfolio management entity
that enables faster delivery of products
• Promotes Lean thinking – remove obstacles
• Pull across product delivery organization
• Effective resource allocation, capacity
planning
• Change agent
The Agile PMO – Embrace Value
A centralized portfolio management entity that enables faster delivery of products: • Organization innovation is delivered
through projects
• Our competitors are figuring out how to deliver faster and faster and yet faster
The Agile PMO – great results NOW
We Must Change – Refocus PMO on Value
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The Agile PMO – great results NOW
What is One Thing You Can
Change?
The Agile PMO – Embrace Value
m.nir@sapir-cs.com
Increase your Return from Projects!
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